How too many compensation systems fail of their own weight. Too many firms allow partner compensation formulas to become fraught with complexity, compromise and unintended consequences. Here Marc Rosenberg, author of How to Bring in New Partners, considers 14 of the worst complications he sees. How many of these are lurking in your firm?
Five reasons for one, eight for the other. And they’re not all created equal. After studying some 700 firms, Marc Rosenberg has some fairly hard-and-fast rules about how to bring in new partners. Here, he delivers five reasons to lean toward deciding on bringing in traditional equity partners and eight reasons for making them non-equity partners. All things being equal, they aren’t.
What makes you flinch? By Sandi Smith Leyva Accountant’s Accelerator If you feel you should be doing better than you are in business, you may have a belief pattern that is unconsciously holding you back. The first step is to bring it to the surface. Only then can it be addressed, released and replaced with a belief that will lead you to increased success. Here are five of the most common thinking patterns or beliefs that will keep your accounting business from growing.
By Ed Mendlowitz “Tax Season Opportunity Guide“ QUESTION: I got a new client because of one of my employees. Do I have to give her anything? RESPONSE: Wrong attitude! You should want to give her something. You should be happy that a staff person was able to bring in business. Many firms offer referral fees, bonuses or commissions. I suggest paying 10% of collections for five years, as long as the employee continues to work for you.
Five issues that should never be part of the calculation. By Marc Rosenberg Author of How to Bring in New Partners Contrary to popular wisdom, the most successful CPA firms are finding that the fundamental and critical tactic in bringing in new partners begins with severing, as much as possible, the link between the ownership percentage and these five issues:
Finding the perfect compensation system By Robert J. Lees and August J. Aquila Creating the Effective Partnership the right things. Every compensation plan should be constructed to help the firm enhance its ability to service clients, achieve its strategic goals and attract, reward and retain the right people. If a firm’s plan does not accomplish these objectives, it needs to be restructured.
Today’s 5 essentials. When CPAs are invited into a firm’s partnership, their natural first question is, what’s in it for me? Marc Rosenberg, author of How to Bring in New Partners, reveals how the best firms are responding with five key deal points.
What 80% of firms agree on. By Marc Rosenberg The Rosenberg Survey If partner compensation is the single most critical and sensitive aspect of CPA firm practice management today, then a close second is partner retirements and buyouts – the money partners receive for the purchase of their ownership in the firm when they retire or leave the firm due to death, disability, withdrawal or expulsion. The amount of money involved is quite significant. Roughly 80% of all firms consider the value of the firm to include: